AlphaTec Reports Third Quarter 2018 Financial and Corporate Highlights
Results for the third quarter ended September 30, 2018 and corporate highlight
CARLSBAD, Calif., Nov. 08, 2018 (GLOBE NEWSWIRE) — Alphatec Holdings, Inc. (“ATEC,” or the “Company”) (Nasdaq: ATEC), a provider of innovative spine surgery solutions with a mission to improve patient lives through the relentless pursuit of superior outcomes, today reported financial results for the third quarter ended September 30, 2018 and corporate highlights.
Third Quarter 2018 Financial Highlights
- Total net revenue of $23.0 million; U.S. commercial revenue of $21.0 million, up 3% compared to the second quarter of 2018
- U.S. commercial gross margin of 70.1%
- Cash and cash equivalents of $35.1 million at September 30, 2018
- Operating cash burn (excluding debt service and transaction-related costs) of $6.4 million
Organizational, Commercial and Product Highlights
- Completed a $35 million debt financing and retired the Company’s $29.2 million term loan with Globus Medical, Inc., which will reduce debt service costs by approximately $27 million over the next three years
- Obtained 510(k) clearance for the OsseoScrew® System, the first-of-its-kind, expandable pedicle screw system, intended to restore the integrity of the spinal column in patients with advanced stage tumors involving the thoracic and lumbar spine
- Continued transition of the sales organization and increased contribution from dedicated agents to 63% of U.S. commercial revenue
- Made three key additions to the ATEC leadership team: Mark Ojeda, Executive Vice President of Cervical & Biologics, and Darrell Wilson and Mason Zabel, Territory Development Managers for the Central United States, who collectively bring decades of spine industry success to ATEC
“I am exceptionally proud of our accomplishments in the third quarter,” said Pat Miles, Chairman and Chief Executive Officer of ATEC. “We achieved another quarter of sequential growth in U.S. commercial revenue, in what is traditionally a seasonally challenging quarter for spine. We also experienced year-over-year revenue growth in our U.S. commercial business for the first time since we began the process of reducing non-strategic distributor relationships in early 2017. We are building a motivated and focused sales force while bringing clinical distinction to our portfolio in order to accelerate new surgeon adoption. The surgeons and sales representatives who now are partnering with us recognize that change is coming and believe wholeheartedly in the ability of this team to bring profound innovation to a market that needs it.”